April ICP Rises, Impact Of Tensions In The Middle East

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif set the average Indonesian Crude Price (ICP) in April of US$87.61 per barrel, through the Decree of the Minister of Energy and Mineral Resources Number 238.K/MG.03/DJM/2024 concerning the Price of Indonesian Crude Oil in April 2024.

"The figure of the April ICP was set at US$87.61 per barrel, an increase of 3.83 dollars from the March ICP of US$83.78 per barrel. The increase in the ICP was influenced by the increase in major crude prices in the international market, following tensions in the Middle East that sparked market concerns about oil supply disruption," said Head of the KLIK Bureau of the Ministry of Energy and Mineral Resources Agus Cahyono Adi, quoted on Saturday, May 4.

Agus said another major factor that led to an increase in crude oil prices in April 2024 was the OPEC revision over a decline in production projections from Non-OPEC countries in April 2024 publication compared to the previous month.

In addition, according to an EIA report, the United States commercial gasoline stock decreased by 1.1 million bbl at the end of April 2024, compared to the end of the month before it became 226.7 million bbl.

Another thing that affected the increase in world crude oil prices was European inflation in March 2024, which decreased to 2.4 percent exceeding expectations, raising market expectations for lower interest rates in June.

"Meanwhile, the Asia Pacific region was influenced by an increase in the growth of Chinese and Indian manufacturing in March 2024 compared to the previous month, which reached PMI Manufacturing of 50.8 and 59.1, respectively," added Agus.

The development of the average price of major crude oil in April compared to March 2024 has increased to the following:

Brent' dated rose by 4.67 dollars per barrel from 85.48 dollars per barrel to 90.15 dollars per barrel

WTI (Nymex) increased by 3.99 US dollars per barrel from 80.41 US dollars per barrel to 84.39 US dollars per barrel.

Brent (ICE) rose by 4.33 US dollars per barrel from 84.67 US dollars per barrel to 89.00 US dollars per barrel.

OPEC basketball rose by 5.05 US dollars per barrel from 84.13 US dollars per barrel to 89.18 US dollars per barrel.

On average, Indonesia's crude oil ICP increased by USD 3.83 from USD 83.78 per barrel to USD 87.61 per barrel.